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JAMB Principles of Accounts 2013 Question 30

Question 30

Not-for-Profit Organisations

Which of the following is accounted for in receipts and payment account?

  1. A.Subscriptions received in advance.
  2. B.Subscriptions due not yet received.
  3. C.Accrued expenses on annual dances.
  4. D.Depreciation of the club house.
Show the answer and explanation

Answer: A (Subscriptions received in advance.)

Explanation

A receipts and payments account shows only cash; subscriptions received in advance are cash actually received.